Expect consumers to tighten their spending amid high gas prices

By Allison Cerra

NEW YORK — Rising gas prices will prompt consumers to be more mindful of their spending habits, according to Nielsen projections.

In the United States, Nielsen noted, households could be paying an extra $52.50 with a 50-cent increase in gas prices, $105 with a $1 increase and $210 if prices jump up $2, prompting consumers to tighten their wallets. This will mirror historic trends, which include increased trip compression, more value-conscious shopping alternatives and increased use of coupons, Nielsen said.

So what does this mean for consumer packaged goods manufacturers and retailers? Nielsen executives Todd Hale, SVP consumer and shopper insights, and Carman Allison, director shopper and industry insights, stressed that CPG manufacturers and retailers should "actively engage their consumers/shoppers. Once again, trip capture will be paramount and there are opportunities for retailers and manufacturers to convert a likely decline in out-of-home eating and entertainment into spending for at-home options," they said.